judgment

S.B. Sinha, J. —

1. Leave granted.

2. Appellant was the owner of a Sea Vessel known as Sea Lark. The vessel was engaged for fishing purposes. Appellant obtained a loan from Canara Bank (Bank). At the time of sanction of loan, the Bank obtained an insurance policy from the respondent no. 1 in respect of the said vessel. It was insured on 12.04.1979 to cover the period from 12.04.1979 to 12.04.1980. It was later on renewed for the period 12.04.1980 and 11.04.1981. The vessel sunk on 21.07.1980. A claim was made in that behalf, which having been repudiated by the respondent No. 1, a civil suit marked as Suit No. 333 of 1983 was filed by the appellant and the Bank before the High Court of Judicature at Madras. Respondent no. 1 in its written statement inter alia contended that the vessel was not seaworthy.

Several issues were framed. Issues No. 2 and 4 which are relevant for our purpose are as under:

“2.Whether the defendant is liable to pay the suit claim?

4.Whether the defendant is right in repudiating liability under the policy?”

3. The suit was decreed by a learned Single Judge of the High Court inter alia on the premise that one Hemchandra Babu who was the agent of the insurer